Sensex settles 300 pts higher, Nifty above 24,850: Buying in IT shares among key factors behind market rise

Sensex, Nifty rise in September 9 trade. 

The benchmark equity indices advanced in September 9 trade, tracking gains in global markets and supported by buying in IT shares amid expectations of a US Federal Reserve rate cut.

Sensex climbed 314.02 points or 0.39 percent to settle at 81,101.32. During the day, it surged 394.07 points or 0.48 percent to 81,181.37. The Nifty rose by 95.45 points or 0.39 percent to 24,868.60, registering its fifth day of gain.

Key factors behind market rise

1) Buying in IT shares: Shares of Infosys jumped more than 4 percent after the company announced that its board will meet on September 11 to consider a proposal for buyback of shares. Nifty IT index rose more than 2 percent in the morning to 35,095 as sharp rise in heavyweights Infosys and Wipro contributed to the uptick in the sectoral index.

Infosys shares jump 4% ahead of board meet to consider share buyback proposal on Sept 11

2) Hopes of US Fed Rate Cut: The weak jobs report reinforced investor expectations that the Federal Reserve will soon lower borrowing costs to support economic growth. "Friday’s troubling non-farm payrolls report deepened concerns about a weakening US job market and potential slowdown. Investors now anticipate multiple rate cuts this year, with markets pricing in aggressive Fed easing to address labour market deterioration," said Devarsh Vakil, Head of Prime Research, HDFC Securities.

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3) Rally in global markets: In Asia, South Korea’s Kospi, Japan’s Nikkei 225 and Hong Kong’s Hang Seng traded higher. On Wall Street, the Nasdaq touched a record high on rate cut hopes, led by gains in technology stocks. The S&P 500 also advanced, while US futures indicated a positive opening.

4) GST rate cut optimism: Sentiment also got a lift from recent GST rate cuts announcement on daily essentials and personal-use items. "Autos are the major beneficiaries of GST reforms, and demand is expected to remain strong post-September 22," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

5) Rupee rises: The rupee appreciated 14 paise to 87.95 against the US dollar in early trade, tracking positive domestic equities. However, concerns over US tariffs on India and global uncertainties kept traders cautious.

What experts say?

On the technical front, Anand James, Chief Market Strategist at Geojit Financial Services, said, "Upside momentum vanished on test of 24,870, which we had pencilled in as a critical pivot. Oscillators remain accommodative towards further upsides. A close beyond the 24,730–870 range will provide clarity."

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